AT&T instituted a long-anticipated plan today to charge more for Internet hogs who stay online for hours, and less to users whose connect times are low.
AT&T's WorldNet unit said it will eliminate its US$19.95 flat-fee, unlimited-use plan and begin charging customers a 99-cent-per-hour fee for use after 150 hours per month. The decision followed trials of various measures to deal with heavy use and system overloads during peak-usage times.
WorldNet also intends to lower rates for those who stay online for shorter times. These customers will continue to pay $9.95 for 10 hours of monthly usage, but will be charged 99 cents an hour for each hour beyond 10, down from the current $2.50.
The moves, which will take effect 1 May, are the latest by a major Internet service provider to cope with high usage levels by subscribers under flat-fee, unlimited-use plans.
In February, America Online Inc. announced a $2 increase in its monthly rate - to $21.95 - in large part to cope with the high costs of heavy usage.
Among the options WorldNet tested and discarded after negative subscriber feedback was automatic termination of long user sessions after fixed lengths - two or three hours, for example.
The new plan is expected to affect about 3 percent of WorldNet's more than 1 million customers, the company said. Those affected by the new pricing will be notified by email and post card.
